Contracting Process Overview Agenda Item #12 July 2007

Authority to Contract Public Resources Code (PRC) section When staff and other state agencies lack the expertise to perform the required tasks Department of General Services (DGS) has to approve all state contracts, unless exempt

Allocation Proposals (Internal) Agenda item Proposes contract projects Identified by the Executive Staff Advance the Board’s Strategic Directives and/or programs

Allocation Proposals (con’t) Incorporates all key elements of a SOW (see Attachments 1 and 2). Provides detailed information However, requires staff to fully develop a SOW for project proposals that may not be approved by the Board Allocation Proposal’s SOW format is opportunity to direct changes to the SOW

Scope of Work (internal) Agenda item Item presents for Board approval a detailed, finalized SOW for an approved contract project Identifies the purpose of the contract The specific tasks and details needed List of deliverables and a timeline

SOW Purposes Initially, it allows the Board to agree on the results being sought and to make adjustments used as part of the bid document so that bidders can cost bids for the required deliverables contract proposers can provide proposals as to how they plan to perform the SOW

SOW Purposes (con’t) Becomes part of the contract document used by the contract manager The controlling contract document The final SOW is one of the most important documents of the contracting process

Types of Solicitation Methods/Bid Process Various methods depending on contract Set forth in –Public Contract Code –State Contracting Manual Much described in item and Attachment 3 Today’s focus only on a few methods

Request for Proposal (RFP) RFP, Primary: the lowest cost proposer who meets the minimum evaluation score is proposed for award RFP, Secondary: The proposer who has the highest scoring proposal is recommended for award (cost is one of the evaluation scoring criteria, usually weighted at 30% of the total score)

RFP Evaluation Process Previously developed RFP sample scoring criteria (Attachment 4) Contract manager customizes the scoring criteria for the specific offering –set forth in the solicitation document –evaluated by a panel chosen for its expertise in the subject area and availability –Panel members independently score each proposal –Scores are averaged by the Contracts Unit

Approval of contractors – Board approval Agenda item Board has two options- it can award the contract or not (State Contracting Manual) If not, the Board may direct that the process and/or the SOW be revised and that staff starts the process again, or it can cancel the project

Approval of contractors – Delegation (Internal) Parts of contracting process delegated to the Executive Director Example: awarding and executing Interagency Agreements where the Board has already approved the allocation Board-Staff Linkage Policy (BL-8) contains the full list of contracting delegations (Attachment 5) Case-by-case basis Board has delegated specified aspects for specified contracts for specified reasons Example: finalizing a SOW for a contract where a given fiscal year deadline is imminent

Department of General Services approval Review and approval –Ensuring effective compliance with applicable laws and policies –Conserving the fiscal interests of the state and preventing improvident acts –Applying contract knowledge and legal expertise prior to final approval –Provides final review of CIWMB contract packages after Board approval of a contractor and execution of the agreement by the CIWMB Hears and decides protests